This year ASIC has increased its focus on ensuring that Australian financial services licensees are compliant with their general obligations under the Corporations Act 2001 (Cth). How can you ensure compliance and avoid being ASIC’s next target?
ASIC has ramped up its pursuit against non-complying Australian financial services (AFS) licensees, with its latest target being a “licensee for hire” business, Lanterne Fund Services Pty Limited (Lanterne).
On 6 July 2022, ASIC commenced civil proceedings against Lanterne in the Federal Court of Australia for Lanterne’s breach of its general obligations under the Corporations Act 2001 (Cth) (Corporations Act). Among other claims, ASIC asserts that Lanterne failed to have adequate risk management systems and failed to have adequate and competent resources, with regards to the oversight of its authorised representatives (ARs) and corporate authorised representatives (CARs) that operate under its AFS licence.
ASIC’s action against Lanterne follows its proceedings against another AFS licensee, RI Advice Group Pty Limited (RI Advice) earlier this year. On 5 May 2022, the Federal Court of Australia found that RI Advice had…
